https://www.miningweekly.com

Mofe Creek iron-ore project, Liberia

27th February 2015

  

Font size: - +

Name and Location
Mofe Creek iron-ore project, Liberia.

Client
Tawana Resources.

Project Description
A scoping study on the Mofe Creek project has delivered excellent technical and financial results, along with project design and development simplicity.

A scoping study has determined that the project will have an initial mine life of 14 years.

The study has also identified an opportunity to fast-track the initial one-million-tonne-a-year to 2.5-million-tonne-a-year production scenario using existing infrastructure in Liberia, including a sealed road from the Gofolo mine to the Port of Monrovia, and an existing deep-water port at Freeport-Monrovia. As the project expands, the Freeport capacity will be exceeded and alternative transshipment or shiploading facilities will be required.

The project development plan envisages a staged production ramp-up starting at one-million tonnes a year (Stage 1A) and then increasing production to 2.5-million tonnes a year (Stage 1B).

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discounted cash flow, after royalties at 4.5%, of $435-million. The pretax internal rate of return is estimated at 55.8%.

Value
The initial capital expenditure (capex) required for first production is estimated at $52.9-million, including a 20% contingency on capex.

The total capital cost required to achieve and sustain 2.5-million tonnes a year, including an independent haul road and a transshipment facility at the coast of Liberia, is estimated at $280-million.

Duration
The timeline to initial production is 15 months from the approval of a mining licence.

Latest Developments
Liberian President Ellen Johnson Sirleaf has officially appointed an Inter-Ministerial Concessions Committee (IMCC) to negotiate the Mofe Creek’s mineral development agreement (MDA).

The dual-listed miner believes that this appointment also demonstrates the technical and commercial viability and sustainability of the iron-ore project.

The IMCC will be chaired by the Lands, Mines and Energy Minister and further constitutes by a co-chair from the National Investment Commission, a legal adviser to the President, Ministers from the departments of labour, justice and finance, as well as representatives of the Environmental Protection Authority, as proposed by the chairperson.

The role of the IMCC in the MDA process is to oversee and coordinate the entire investment concessional review process and its due diligence functions for the benefit of all parties.

All natural resource concession agreements in Liberia, including mining concessions, are negotiated by the IMCC.

The MDA process began with the convening of the Inter-Ministerial Technical Committee last year and subsequent site visits to the project.

The process has now advanced to the next level of negotiation through the appointment of the IMCC.

The culmination of the MDA process will result in a Bill being passed through Parliament for the company’s concessional rights to build, operate and sustain a mining and logistics operation within the Grand Cape Mount County.

“We are proud to be developing a project within Liberia with the full support of government and the communities within our project area and look forward to negotiating and finalising the MDA over the coming months,” says Tawana CEO and executive chairperson Wayne Richards.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Tawana Resources, tel +61 8 9287 4333 or fax +61 8 9389 3199.

Edited by Creamer Media Reporter

Comments

Showroom

SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 
Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.109 0.139s - 90pq - 2rq
Subscribe Now